Le Meridien compromise a fraud, NDMC tells HC

It also informs HC that a home ministry inquiry report indicting former chairman Jalaj Shrivastav has recommended CBI probe into irregularities in fixing licence dues of the hotelTNN | February 10, 2016, 17:30 IST

New Delhi: New Delhi Municipal Council (NDMC) has termed as "fraud" an out-of-court settlement that it had entered into with Le Meridien hotel to clear pending licence dues through payment of Rs 151 crore.

The compromise resulted in "loss to the tune of several hundred crores to the public exchequer" since actual liability of the luxury hotel is more than Rs 400 crore as licence dues, NDMC informed the Delhi high court through an affidavit on Tuesday.

"The figure of approximately Rs 151 crore was neither correctly calculated nor arrived at in a proper manner, and illegal additional benefits accorded to the hotel, in a malafide and fraudulent exercise," the council added, urging the HC to strike down the settlement decree as illegal.

It also informs HC that a home ministry inquiry report indicting former chairman Jalaj Shrivastav has recommended CBI probe into irregularities in fixing licence dues of the hotel.

"Accordingly, NDMC has handed over certified copies of records of Hotel Le Meridien to the CBI," the report says, adding that CBI has also sought complete files on grant of licence and renewal in case of other hotels, including Taj Mansingh, Lalit, Gesture, etc.

The civic agency points out that "approval of the council was not taken before arriving at the alleged settlement as per scheme laid down in the NDMC Act, 1994" by the then chairman. It alleges that the hotel obtained the compromise decree by fraud on April 21 last year and the same needs to be set aside.